Polar Capital Technology Trust (PCT) H2 2024 earnings summary

Executive summary

• NAV per share rose 40.8% to 3,154.11p, outperforming the Dow Jones Global Technology Index's 38.9% gain for the year ended 30 April 2024.

• Total net assets increased to £3.80bn from £2.83bn year-over-year, with share price up 50.5% and discount narrowing from 13.4% to 7.4%.

• Strong performance driven by AI-focused portfolio rotation, especially in semiconductors and related subsectors.

• No dividend recommended; focus remains on long-term capital growth.

• Proposed 10-for-1 share split to improve accessibility, subject to AGM approval.

Financial highlights

• NAV per share: 3,154.11p (up from 2,239.48p); total net assets: £3,804.5m (up from £2,828.1m).

• Total return: £1,115.4m gain (prior year: £105.2m loss); capital return: £1,124.6m gain.

• Earnings per share: 904.21p (2023: loss of 81.28p); capital return per share: 911.68p.

• Investment income: £15.5m; other operating income: £6.4m; total expenses: £27.3m.

• Ongoing charges ratio: 0.80% (2023: 0.81%); no performance fee accrued.

Outlook and guidance

• Technology sector outlook remains positive, with rapid AI development expected to drive future growth.

• Global IT spending forecast to rise 8% in 2024 to $5.1trn; technology sector earnings expected to grow 18%.

• Portfolio remains heavily weighted to AI enablers (chips, systems, storage, networking); further AI-driven disruption anticipated.

• Macro risks include inflation, interest rates, recession, and geopolitical tensions, especially US-China relations and Taiwan.